SMEs have reduced their effectiveness, and the State Council’s deputy ministerial level administration

On September 22, the Ministry of Industry and Information Technology officially released the “12th Five-Year Plan for SME Growth” at the China SME Summit Forum held in Guangzhou. The "Plan" proposes to continue to clean up various charges involving small and medium-sized enterprises, standardize administrative fees and services, and reduce the burden on small and medium-sized enterprises. However, in the past year, the corporate burden reduction initiative led by the Ministry of Industry and Information Technology has had little effect. Informed sources revealed to reporters that the 69 categories and thousands of toll items discovered by the inventory were still far from being cleaned up, and some projects even resurfaced. A person familiar with the matter disclosed to the newspaper that the state is planning to establish a high-level coordination mechanism for the SME management system, that is, to set up a small and medium-sized enterprise bureau directly under the State Council or relying on a large ministry to promote the reduction of actions against SMEs. The effect of reducing the burden is very small. As early as more than a year ago, the largest scale, the highest specification and the longest time in history was the reduction of the burden on SMEs. The reporter learned from the Ministry of Industry and Information Technology that on June 13, last year, the State Council established a leading group for the special governance of reducing corporate burdens. The leading group was led by Li Yizhong, then minister of the Ministry of Industry and Information Technology, deputy director of the Ministry of Supervision, deputy director of the Correction Office, Qu Wanxiang, and the National Development and Reform Commission. Deputy Director Peng Sen, Vice Minister of the Ministry of Industry and Information Technology, Miao Wei, Assistant Secretary of the Treasury, Wang Baoan, four deputy ministerial officials served as deputy heads. In addition, Guo Yanyan, head of the discipline inspection team of the Central Commission for Discipline Inspection, Zhu Hongren, chief engineer of the Ministry of Industry and Information Technology, Liu Jinguo, deputy director of the Ministry of Public Security, Jiang Li, deputy minister of the Ministry of Civil Affairs, and Qi Wei, deputy director of the Ministry of Housing and Construction, also served as members. Officials from the Ministry of Industry and Information Technology said at the time that in order to protect the rights and interests of small and medium-sized enterprises, the efforts to reduce the burden on small and medium-sized enterprises will be intensified. From the second half of the year, special management activities for reducing the burden on small and medium-sized enterprises will be carried out in three phases; the relevant departments are required to be at the end of August. Prior to the inspection and cleanup, from September to October, the policy measures for cleaning up and reducing the burden were proposed. In December, the inspections were highlighted. However, more than a year has passed and the corporate burden has not improved significantly. Many people interviewed by this newspaper said that administrative fees are still far from being cleaned up. Unlicensed charges and illegal charges are still happening frequently. In some places, administrative fees and charges that were reduced during the financial crisis began again. Resurrection. According to the requirements of the work of the burden reduction working group, no department or unit has the right to charge any small and medium-sized enterprises any fees other than the national laws and regulations and the charging items stipulated by the financial and price authorities of the State Council, and does not have the right to request various kinds of sponsorship or acceptance for any reason. Paid service. However, an official of the Guizhou Provincial Economic and Information Commission admitted that at the local level, some functional departments have re-approved, lightly serviced, re-charged, lightly handled, and inefficient, and there are still phenomena of “disorderly fines, arbitrary charges, and unreasonable apportionment”. The departments are pushing each other. This is not the first time to reduce the burden of action. Every two to three years in China, we will organize a special work on corporate burden reduction. In the past few years, the country has cancelled tens of thousands of fees and charges, but the problem is that the company's burden-reduction work has not yet emerged from the "governance-expansion-re-management-re-expansion" cycle. In the view of some people, the reason why corporate burden reduction has not been able to get out of the cycle is that the excessive charges of governance are placed on the "sports-style" governance. Sports-style governance can cut off a number of toll items in a certain period of time, and investigate and deal with a number of irregularities. Although it can have a greater impact on arbitrary charges over a period of time, this is not a long-acting drug. The Regulations on Enterprise Burden Supervision, which has high hopes in the industry, has been drafted since 2006, but it has not yet been published. According to informed sources, due to the interests of many government departments involved in coordination, this service "long-acting drugs" will not be able to. The above-mentioned officials of the Ministry of Industry and Information Technology said: "Although the work of the SMEs is in the Ministry of Industry and Information Technology, the Ministry of Industry and Information Technology is also the leader of this reduction operation, but the Ministry of Industry and Information Technology only has recommendations and does not reduce the real power, thus greatly reducing the actual effect of burden reduction." The group is a phased working mechanism and does not belong to the newly established deliberative coordination mechanism. With the continuous advancement of real estate regulation and the cooling of the land market, the land transfer fee as the “first source of debt repayment” has shrunk dramatically, and the repayment ability of local governments has been greatly reduced. At the same time, the housing projects and other livelihood projects also require large amounts of funds. Investing, administrative fees have become a "life-saving straw" for local governments. "Some local governments have used fees as a means of solving financial difficulties in a situation where they are difficult to break even, which undoubtedly adds to the difficulties of enterprise development," said the person familiar with the matter. It is reported that in the process of this burden reduction operation, various departments have also set up burden reduction agencies. Relevant persons from the Ministry of Industry and Information Technology told the reporter that some places have set up a “burden reduction office” in the past, and this reduction can continue to be organized and implemented by the “Reduce Office”. The management system of SMEs also needs to be rationalized and strengthened. The person familiar with the matter said that the state is planning to establish a SME administration directly under the State Council. However, the bureau may also rely on a certain ministry to become a secondary bureau at the vice ministerial level. "After several government institutional reforms, the departments involved in the management of small and medium-sized enterprises mainly include the SMEs Division of the Ministry of Industry and Information Technology, the Township and Village Enterprise Bureau of the Ministry of Agriculture, and the Department of Individual and Private Economic Supervision and Management of the State Administration for Industry and Commerce. These departments have their starting points and perspectives for managing SMEs. Not the same, there are divisions, overlaps, and blanks," said the person familiar with the matter. According to reports, in the new round of institutional reforms, some provinces and municipalities have established economic information commissions or industrial information commissions. The original small and medium-sized enterprises bureaus have been reduced to bureau-level units within the commission, and the administrative level and control measures of local small and medium-sized enterprises. There is a weakening phenomenon. This obviously does not match the importance of SMEs. According to public information, at present, there are 40 million SMEs in China, accounting for 99% of the total number of enterprises, contributing 60% of China's GDP, 50% of tax revenue and 80% of urban employment. Among those interviewed by this newspaper, more tend to add the “Small and Medium Enterprises Administration” directly at the level of the ministries and commissions directly under the State Council. Analysts believe that the advantage of this kind of thinking lies in the clear and specific lead department responsible for implementing the promotion policies for the development of various SMEs.

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